How do you report a sale of a rental property in Quicken for Windows

We just sold a long term rental and are buying another one with the money. How do I enter that in Quicken?

Best Answer

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi Roy Rhino,

    Presumably, you have entered your rental property into Quicken and it appears as an asset on your "Net Worth" report as an "Other Asset".  To record the sale, you need to enter the sale transaction into Quicken.

    To use a simple example transaction, suppose that you had recorded original the purchase price as $100,000.00, and you had a mortgage the property on the that has a balance of $60,000.00 on the sales date.  And you recently sold it for $130,000.00.  The entry to record the sale (that you would enter in your bank account register in Quicken) would be:

    Cash deposit to bank account             $70,000.00
    Pay-off of mortgage balance               $60,000.00
    Remove the Rental Property (asset account)                                  $100,000.00
    Gain on sale of rental property (income account)                           $ 30,000.00

    When you buy the replacement rental property, you will record it as a new asset at it's purchase price (as well as closing costs), record the mortgage payable on it, and the difference (including downpayment and fees/costs of purchase) as a deduction from your bank account.

    Hope this helps.

    Frankx


       

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
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Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi Roy Rhino,

    Presumably, you have entered your rental property into Quicken and it appears as an asset on your "Net Worth" report as an "Other Asset".  To record the sale, you need to enter the sale transaction into Quicken.

    To use a simple example transaction, suppose that you had recorded original the purchase price as $100,000.00, and you had a mortgage the property on the that has a balance of $60,000.00 on the sales date.  And you recently sold it for $130,000.00.  The entry to record the sale (that you would enter in your bank account register in Quicken) would be:

    Cash deposit to bank account             $70,000.00
    Pay-off of mortgage balance               $60,000.00
    Remove the Rental Property (asset account)                                  $100,000.00
    Gain on sale of rental property (income account)                           $ 30,000.00

    When you buy the replacement rental property, you will record it as a new asset at it's purchase price (as well as closing costs), record the mortgage payable on it, and the difference (including downpayment and fees/costs of purchase) as a deduction from your bank account.

    Hope this helps.

    Frankx


       

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • Roy Rhino
    Roy Rhino Member ✭✭
    I do not see where to enter the sale transaction?
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    As noted above, you can enter it into the register of the account that you made the cash deposit to - assuming of course that you actually took cash away from the settlement table.

    Frankx

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

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